Download - CEIS Petroleum Update May2011
CARIBBEAN PETROLEUM UPDATE is a monthly Bulletin which highlights petroleum issues affecting or
relevant to the Caribbean, international developments that may affect the region’s way of life and movements in oil prices and retail prices for fuel regionally.
Diesel vehicles manufactured after 2006 use a Particulate Filter which traps the particles of soot
in the exhaust coming from the engine.
STEP 1: the filter traps the tiny particles of soot in the ex-haust fumes.
STEP 2: The filter uses a sensor that measures back pres-sure, or the force required to push the exhaust gases out of the engine and through to the tailpipes.
STEP 3: As the soot particles in the particulate filter accumu-late, the back pressure in the exhaust system increases. When the pressure builds to a certain point, the sensor tells the engine management computer to inject more fuel into the engine. This causes heat to build up in the front of the filter, which burns up the accumulated soot particles. The entire cycle occurs within a few minutes and is undetectable by the vehicle's driver.
Source: http://auto.howstuffworks.com/fuel-efficiency/alternative-fuels/how-clean-diesel-fuel-works1.htm
CONTACT US
Caribbean Energy Information System Scientific Research Council
Hope Gardens, Kingston 6, Jamaica
1-876-927-1779 (Telephone)
1-876-977-1840 (Fax)
[email protected] www.ceis-caribenergy.org continued on page 2/
D iesel is the most widely used petroleum based fuel in the
Caribbean. Although not the most environmentally friendly
fuel, it keeps the Caribbean economies moving. From
movement of goods, to the generation of electric power, to
transportation of people, to increased efficiency on farms, diesel fuel
plays a vital role in improving the standard of living within the region.
Over the years technological advancement focused on reducing emis-
sions has aided the development of a new grade or standard of diesel.
This new grade of diesel referred to as Ultra-low-sulphur diesel
(USLD) is a new standard proposed by United States Environmental
Protection Agency - EPA for the sulphur content in on road diesel fuel.
Although this type of diesel fuel is not an alternative fuel,
it provides important environmental and fuel saving bene-
fits especially when produced from non-petroleum and
renewable resources. USLD enables the use of advanced
emission control technologies (catalytic converters and
particulate traps) to reduce or eliminate pollutants to the
environment such as Nitrogen Oxide (NOx) and Particu-
late Matter (PM).
All diesel vehicles can use Ultra-low-sulphur diesel. However, diesel
vehicles manufactured after 2006 are specifically designed to use
ULSD. Caribbean countries do not currently import and use USLD.
Caribbean Energy Information System (CEIS)
May 2011
page 2 Call: 1-876-927-1779 | Caribbean Petroleum Update : May 2011
C A R I B B E A N E N E R G Y I N F O R M A T I O N S Y S T E M ( C E I S )
IMPLICATIONS OF USING REGULAR DIESEL IN VEHICLES MANUFACTURED AFTER 2006
continued from page 1/
However, these countries have seen an increase in imports of
diesel vehicles manufactured after 2006. What does this mean
for consumers?
Using regular diesel in these vehicles can affect their perform-
ance and the emission control technologies with which they are
built. This can cause serious damage to the engines thereby
voiding the Manufacturer’s warranty or preventing the vehicle
from operating.
The efficiency and durability of these vehicles can be affected
if regular diesel is used.
Continued use of high sulfur diesel fuel increases the risk of
health problems in the Caribbean, some of which include brain
damage, asthma or other lung related problems.
Diesel emissions such as SO2 (Sulfur Dioxide) are contribut-
ing to Global warming, and are therefore of concern.
The accompanying table shows the comparison in terms of
parts per million mass (PPM) and retail pump prices for the
different Diesel standards.
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Note: - The Cetane rating for diesel used in the Caribbean ranges
between 38 and 50.
- On average within the Caribbean, diesel fuel at the
pumps is at 5000 PPM as compared to USLD which is at
15 PPM.
As seen above, the retail price for USLD is even lower than for
regular diesel. This means that imports of USLD to the Caribbean
should not result in any additional cost for the fuel itself and no
special storage is required. Should the Caribbean make the switch?
Why hasn’t that happen you may ask? Well the answer is simple,
only a few refineries currently produce USLD and therefore
accessing the fuel in the volumes required can be problematic for
Caribbean importers.
Trinidad and Tobago and Jamaica are the only two CARICOM
countries that currently produce diesel. However the Cetane rating
(38 – 45) for the diesel produced by Trinidad ranges between 800
PPM and 1000 PPM while in Jamaica regular diesel produced with
Cetane rating (45 - 50) has 3000 PPM. Both refineries are not
currently equipped to produce USLD and facilitating this would
require large investments. Trinidad and Tobago is currently up-
grading the Petrotrin Refinery for production of USLD. This is
expected to be completed by June 2012 with a production target of
40,000 barrels per day. If this gets off the ground it can only be of
benefit to the region as the demand for diesel has been increasing.
Ultra-Low-Sulphur
Diesel
15 maximum Europe, USA,
Canada, USVI
$1.04 (Source: EIA, USA)
Low-Sulphur
Diesel
500 less Canada,
Australia et. al
$1.19 (Source: Gas Buddy,
Canada)
Regular Diesel 500 higher Caribbean et. al $1.20 (Source: CEIS,
Caribbean)
Diesel Type PPM
Where Used? Avg Retail Price per litre
May 30, 2011 (US$)
Caribbean Petroleum Update : May 2011 | Call: 1-876-927-1779 page 3
C A R I B B E A N E N E R G Y I N F O R M A T I O N S Y S T E M ( C E I S )
REGULAR UNLEADED GASOLINE AVERAGE PRICES AT THE PUMP
January - May 2011
Despite efforts by some Caribbean Governments to cushion the impact of increases in International Crude Oil prices, Carib-
bean Consumers continue to see challenging increases in retail fuel prices at the pumps.
Table 1 and Chart 1 below provide a synopsis of the average prices seen for Regular Unleaded Gasoline.
.
NOTE:
*US Gallon = 3.785 L
*Imperial Gallon = 4.546 L
*As at November 1, 2009
MTBE was phased out from
all gasoline blends in Ja-
maica and replaced with
10% Ethanol.
CHART 1
See prices for other products at See prices for other products at See prices for other products at www.ceiswww.ceiswww.ceis---caribenergy.orgcaribenergy.orgcaribenergy.org ...
Table 1: Unleaded Gasoline: Regular : Average Retail Price – January - May (US$/Litre)
2011
COUNTRIES JAN FEB MAR APR MAY AVG
ANTIGUA/ BARBUDA 1.00 1.00 1.07 1.15 1.25 1.09
BAHAMAS [91 OCT] 1.24 1.25 1.30 1.46 1.47 1.35
BARBADOS 1.47 1.48 1.49 1.59 1.59 1.53
BELIZE [87 OCT] 1.33 1.34 1.48 1.50 1.54 1.44
B.V.I. [87 OCT] 1.12 1.13 1.20 1.26 1.26 1.20
DOMINICA 1.01 1.05 1.06 1.11 1.21 1.09
GRENADA (95 OCT) 1.05 1.06 1.17 1.23 1.29 1.16
GUYANA 0.99 0.99 1.06 1.08 1.08 1.04
JAMAICA (87 OCT[E10]) 1.17 1.18 1.25 1.28 1.29 1.23
MONTSERRAT 1.13 1.14 1.18 1.27 1.38 1.22
ST. KITTS/ NEVIS 1.04 1.07 1.20 1.13 1.14 1.11
ST. LUCIA 1.14 1.14 1.16 1.22 1.27 1.18
ST. VINCENT/GRENADINES 0.99 0.98 1.00 1.06 1.10 1.02
SURINAME [95 OCT] 1.21 1.32 1.34 1.47 1.55 1.38
TRINIDAD/TOBAGO [92 OCT] 0.42 0.42 0.42 0.42 0.42 0.42
TURKS/CAICOS 1.36 1.36 1.42 1.42 1.45 1.40
page 4 Call: 1-876-927-1779 | Caribbean Petroleum Update : May 2011
C A R I B B E A N E N E R G Y I N F O R M A T I O N S Y S T E M ( C E I S )
Over the four-month period (February - May)
International Crude Oil prices for the most part,
remained above the US$100/BBL mark for the
last two months. The highest price (US$119.42/
BBL) seen over the period was in the third week
of April. This resulted in uncertainties in retail
prices for refined petroleum products in most
Caribbean Countries where prices were already
on the increase. As compared to the record oil
price year of 2008, the highest price seen over
this period was approximately 19% lower than
the highest price of approximately US$147/BBL
seen during that year.
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US$/B
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